How much does insurance cost for excavation and grading contractors?

Excavation contractors pay an average of $127 per month, or $1,522 annually, for general liability insurance.

General liability insurance provides financial protection against common lawsuits from customers. It can cover costs if someone sues your business over a bodily injury, property damage, or copyright infringement.

This is the average policy for excavation contractors who buy from Insureon:

Premium: $127 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

The cost of general liability coverage depends on factors such as the policy limits you choose, the size of your business, the amount of foot traffic, and any subcontractors or additional insured endorsements. Learn more about how your premium is calculated.

Construction businesses and contractors pay an average of $98 per month for a business owner's policy, or $1,173 annually.

A BOP is an insurance package that bundles two important types of coverage at a discount. It includes general liability coverage to protect against common lawsuits, and commercial property insurance to cover vandalism, theft, and property damage.

This is the average business owner's policy for a construction contractor who buys from Insureon:

Premium: $98 per month
Policy limits: $1 million per occurrence; $2 million aggregate

If you're wondering why a BOP costs less on average than general liability insurance, that's likely because only small, low-risk businesses qualify for a BOP.

The cost of a business owner's policy depends on factors such as the insurance options you choose, the size of your business, the amount of foot traffic, and the value of your business property.

Excavation companies pay an average of $396 per month, or $4,747 per year, for workers’ compensation insurance.

Workers' comp helps pay for medical costs from work-related injuries and illnesses. Most policies include employer's liability insurance, which covers the cost of lawsuits related to workplace injuries.

There's usually no limit to how much a workers' comp policy can pay for employee benefits, though it depends on state laws.

The cost of workers' compensation insurance depends on factors such as the number of employees and the type of work they do. Learn more about how workers' comp costs are calculated.

Excavation contractors pay an average of $220 per month, or $2,644 annually, for commercial auto insurance.

Most states require this type of insurance for vehicles owned by a business. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance (HNOA) instead.

A commercial auto policy provides financial protection in the event of an accident involving your business vehicle. It can help pay for property damage, medical expenses, and legal defense costs.

If you need heavy equipment insurance for vehicles like backhoes and bulldozers, you can often add a mobile equipment endorsement to your auto insurance coverage.

The cost of commercial auto insurance depends on the coverage options you choose, the value of the vehicle, and the driving records of anyone permitted to drive it. Learn how insurance providers calculate your premium.

Excavation contractors pay an average of $53 per month for contractor’s tools and equipment insurance, or $632 annually.

A form of inland marine insurance, this policy covers the repair or replacement of mobile tools and equipment that's damaged or stolen. It typically covers newer items valued at less than $10,000 that excavation contractors bring to job sites.

You may need additional property coverage for heavy machinery or other expensive equipment brought to construction sites.

The cost of contractor's tools and equipment coverage depends on the value of your tools and equipment and the type of work you do.

Construction businesses and contractors pay an average of $74 per month, or $886 per year, for professional liability insurance. Excavation contractors can often bundle this coverage with general liability insurance for a discount, at a combined average of $112 per month.

Professional liability insurance, also known as errors and omissions insurance (E&O), protects excavation contractors from financial losses related to accusations of negligence or substandard work. It would help pay for attorney's fees and other legal costs if a client sues due to a budget overrun, unexpected delay, or breach of contract.

This is the average insurance coverage for construction professionals who buy from Insureon:

Premium: $74 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,250

The cost of professional liability insurance depends on factors such as the coverage limits you choose, the size of your business, and your profession. Find out how insurers set professional liability premiums.

Excavation contractors pay an average of $83 per month, or $1,000 annually, for commercial umbrella insurance, which you can buy to boost the limits of your general liability, commercial auto, or employer's liability insurance.

When the underlying policy reaches its limit, commercial umbrella insurance activates to cover any costs over that limit, up to the additional limit of your umbrella policy.

The cost of commercial umbrella insurance depends primarily on the amount of coverage you purchase.

Businesses in the construction industry pay an average of $105 per month, or $1,259 annually, for builder's risk insurance. This policy is sometimes called course of construction insurance.

Builder's risk insurance provides coverage for structures under construction. It will help pay for fires, vandalism, and other types of damage.

The cost of builder's risk insurance depends on the value of the structure, including materials and labor.

Excavation contractors and businesses pay an average of $8 per month, or $100 per year, for a surety bond.

A surety bond reimburses your client if you're unable to fulfill the terms of a contract or other agreement. You may need a surety bond to get a license or permit for certain types of excavation work, such as grading.

The cost of a surety bond primarily depends on the size of the bond.